Vishal Mega Mart IPO - Should You Subscribe? Read DRChoksey's Analysis

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Deven Choksey Research Report.Vishal Mega Mart Ltd. will launch its initial public offering on December 11 and the offer closes for subscription on Dec. 13. An Indian retail company has set the price band in the range of Rs 74 to Rs 78 per share. The Rs 8,000 crore IPO comprises only of offer-for--sale with no fresh issue component.The shares will be listed on the exchanges on Dec. 18..Outlook and Valuation: Vishal Mega Mart, with its vast network of 645 stores covering 11.49 million square feet, stands out as a prominent player in the value retail segment. The company showcases strong growth potential, driven by a 26% revenue CAGR (FY22-FY24), consistent Ebitda margins of 14%, and a well-balanced category mix of apparel (44%), FMCG (27%), and general merchandise (29%). While its sales per sq. ft. at Rs 701 appear modest compared to industry benchmarks, this could be justified as it has a focus on catering to middle and lower-middle-income groups. Its 14% same-store sales growth underscores its operational efficiency and strong customer demand. The projected valuation metrics, including a PE of 76 times and EV/Ebitda of 29x, appear attractive, reflecting its strong growth trajectory and market positioning. Vishal Mega Mart presents an attractive opportunity for long-term investors seeking to benefit from India's expanding organized retail market. Hence, we assign a “Subscribe” rating to the IPO..Click on the attachment to read the full report:.Vishal Mega Mart IPO: Price Band, Financials, Key Dates, GMP And More — All You Need To Know.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Vishal Mega Mart IPO - Should You Subscribe? Read DRChoksey's Analysis

The Rs. 8,000 crore IPO opens on December 11 and the company has set the price band in the range of Rs 74 to Rs 78 per share.

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Vishal Mega Mart IPO - Should You Subscribe? Read DRChoksey's Analysis

The Rs. 8,000 crore IPO opens on December 11 and the company has set the price band in the range of Rs 74 to Rs 78 per share.

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